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holiday surepost
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<blockquote data-quote="worldwide" data-source="post: 1209949" data-attributes="member: 2193"><p>It may be the other way around...Amazon has a market cap of $141B to UPS' $86B. Amazon has more cash on hand, $7.4B, to UPS' $6.2B. UPS is more profitable but Amazon has operated for years on razor-thin margins and continutes to grow. Their largest expense is logisitcs and shipping so a tie-up with UPS or FedEx is not far fetched. FedEx probably makes more sense since they are non-union and both Amazon and FedEx are not know for being union friendly. </p><p></p><p>If (when) this happens, imagine the job losses at UPS when the volume shifts to Fedex Ground and SmartPost. Amazon must be one of UPS's largest clinets so any kind of purchase/strategic relationship with FedEx would be devastating.</p><p></p><p>Customers are willing to wait a few extra days for their shipment to arrive and do without all the bells and whistles of full tracking if it means free shipping. UPS is simply responding to market conditions and what their customers (i.e. Amazon) are telling them they need - lower rates for shipping.</p></blockquote><p></p>
[QUOTE="worldwide, post: 1209949, member: 2193"] It may be the other way around...Amazon has a market cap of $141B to UPS' $86B. Amazon has more cash on hand, $7.4B, to UPS' $6.2B. UPS is more profitable but Amazon has operated for years on razor-thin margins and continutes to grow. Their largest expense is logisitcs and shipping so a tie-up with UPS or FedEx is not far fetched. FedEx probably makes more sense since they are non-union and both Amazon and FedEx are not know for being union friendly. If (when) this happens, imagine the job losses at UPS when the volume shifts to Fedex Ground and SmartPost. Amazon must be one of UPS's largest clinets so any kind of purchase/strategic relationship with FedEx would be devastating. Customers are willing to wait a few extra days for their shipment to arrive and do without all the bells and whistles of full tracking if it means free shipping. UPS is simply responding to market conditions and what their customers (i.e. Amazon) are telling them they need - lower rates for shipping. [/QUOTE]
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